Printer friendly version of this page

00-226

CONTACTS:
JO-ANNE PROKOPOWICZ (202) 637-3093
DOROTHY COLEMAN (202) 637-3077

FOR IMMEDIATE RELEASE

 WASHINGTON, D.C., July 13, 2000 – The National Association of Manufacturers today called on the U.S. Senate to vote in favor of full repeal of the estate and gift tax (H.R. 8) and to avoid proposed "carve outs" that would further complicate estate planning for family-owned businesses. The vote will be considered for designation as a Key Manufacturing Vote in the NAM voting record for the 106^th Congress.

"Contrary to short-sighted critics, complete repeal of the death tax is the best solution for a pro-growth economy and for family-owned manufacturing companies," said Dorothy B. Coleman, NAM’s vice president for tax policy. "In the past Congress has tried targeted tax relief, like family business ‘carve outs,’ only to discover that they don’t work. Qualifying for these special estate tax breaks is a bureaucratic nightmare. Business owners must monitor whether they meet the stringent ownership and participation requirements, a time-consuming and expensive endeavor. And there’s no guarantee -- if the government determines after the owner’s death that these requirements have not been met, the full estate tax bill is due upon receipt.

"In considering amendments that would leave the death tax in place, undecided senators should note the huge burden estate tax planning places on small businesses. Based on a recent NAM survey, our small and mid-size members, on average, spend a staggering $52,000 a year on planning for the estate tax . Our members would much prefer investing this money in new jobs, technology and business expansion, but the tax code won’t let them. The NAM urges the Senate to take this opportunity to eliminate this burden on America’s small businesses," Coleman concluded.

-NAM-

Click here for more information on estate taxes.